What is Factoring?

Factoring is the purchase of your current, valid accounts receivables for cash.  You send us the invoice and we front a percentage (70-90%) of the cash at the time the invoice is received.  We collect the remainder of the invoice and remit it to you, as received, less our small fee.

What are the fees?

Fees are determined by the total amount of invoices, the average size of the invoice and the industry the invoice comes from.  Typical fees range from 2-4% of the invoice. visit our pricing page for a more detailed breakdown.

How long does set-up and funding take?

Set-up takes a few days.  Once you are set up, you generate an invoice, send a copy to us, and funding can often take place within 24 hours.

Do I, or does my firm, need good credit to factor?

The short answer is no.  With invoice factoring, your client's credit is more important than yours or your firm's.

Does the fact that my business is new prevent me from factoring?

Absolutely not.  The age of your business has no bearing on the soundness of your invoices.  No matter how long your company has been in business, you can take advantage of factoring.

Does my customer know I am factoring?

Yes they do, however, unlike the old days, factoring is a way of life in the business world today and is a widely accepted practice.  Our team acts as your collection team and your customers are handled courteously and professionally.

What will my customer think about us using a factoring company?

It turns out that many of our customer's own clients are also factoring their invoices so they really think nothing of it.  Factoring is a widely accepted form of doing business today and it really isn't a problem.

How is factoring different from a bank loan?

Factoring is not a loan.  It is a financial transaction, whereby the factoring company purchases your invoices for a small discount.